The company, supported by KPMG, quickly developed an entire TSA program management team and a rigorous governance process with the vendor to facilitate communication, resolve issues, and manage change requirements. The company was able to move away from TSA services in several regions and avoid business interruptions within the required time frames. Effective communication ensured coordination between the buyer and seller and resolved issues in a timely manner. The focus on exit planning contributed to the early termination of some TSA services, resulting in significant cost savings. A Transition Service Agreement (TSA) offers some important benefits, for example. B faster conclusion, smoother transition, lower transition costs, better end-state solutions and clean separation. However, assignments that hurt the TSA can take much longer than expected. We can help you identify key issues and transition services needed in major transformations such as separation and integration programs. We can also check and comment on fair prices and terms of TSA agreements. This is an important part of the sales contract and the key for financial services companies, where big customer data, common back offices and regulation can lead to longer-term TSA deals. A global healthcare company, active in the biopharmaceutical and medical device sectors, has completed the integration of a global business unit. Integration efforts have expanded to 70 countries that have different operating structures and the use of multiple COMPUTER systems.
The challenge for the company was to ensure a timely exit from tsa in all regions, while maintaining continuity of global business. The following comments and questions better represent “things to ask yourself”, not “this is what you need to do to have successful ASD” – apart from the fact that all participants should be communicated and that the agreement should of course be very well detailed. A transition service agreement (TSA) is an agreement between a buyer and a seller in which the seller enters into its services and know-how with the buyer for a certain period of time in order to support the buyer and get used to its newly acquired assets, infrastructure, systems, etc. Given our in-depth knowledge of the financial services industry and objectives, our due diligence experts are in the best position to check financial conditions and comment on areas where insurance, guarantees and indemnifications may not be sufficient given your objectives and the nature of the business. . . .
